Estonia Law on Property (adopted in June 1993, entered into force on 1 December 1993; subsequently amended)

Transcription

1 Estonia Law on Property (adopted in June 1993, entered into force on 1 December 1993; subsequently amended) An earlier English translation of this law was generously provided by the Estonian Legal Translation Centre. Important Disclaimer This does not constitute an official translation and the translator cannot be held responsible for any inaccuracy or omission in the translation. The text should be used for information purposes only and appropriate legal advice should be sought as and when appropriate.

2 Chapter I - General provisions 1 - Purpose of Act The Law of Property Act provides for real rights, their content, creation and extinguishment and is the basis for other laws regulating real rights. 2 - (Repealed entered into force RT I 2002, 53, 336) 3 - (Repealed entered into force RT I 2002, 53, 336) 4 - (Repealed entered into force RT I 2002, 53, 336) 5 - Real rights (1) Real rights are ownership (right of ownership) and restricted real rights: servitudes, real encumbrances, right of superficies, right of pre-emption and right of security. (2) The law may provide for other real rights in addition to those specified in subsection (1) of this section. 6 - Owner (1) (Repealed entered into force RT I 2002, 53, 336) (2) All owners have equal rights unless otherwise provided by law. The property of a legal person or a legal person shall not belong to other persons. ( entered into force RT I 1995, 26-28, 355) (3) (Repealed entered into force RT I 2002, 53, 336) Chapter II (Repealed entered into force RT I 2002, 53, 336) Part 2 - Possession and Land Register Chapter 1 - Possession Division 1 - General provisions 32 - Definition of possession Possession is actual control over a thing.

3 33 - Possessor (1) A possessor is a person who has actual control over a thing. (2) A person who possesses a thing on the basis of a commercial lease, residential lease, deposit, pledge or other relationship which grants the person the right to possess the thing of another person temporarily is a direct possessor, while the other person is an indirect possessor. (3) A person who exercises actual control over a thing according to the orders of another person in the housekeeping or enterprise of the other person is not a possessor Legal and illegal possession (1) Possession is legal or illegal depending on whether or not it is founded on a legal basis. (2) Possession shall be deemed legal until the contrary is proved Possession in good faith and bad faith (1) Possession is in good faith if a possessor does not or need not know that the possession by the possessor lacks a legal basis or that another person has a greater right to possess the thing. (2) Possession is in bad faith if a possessor knows or must know that the possession by the possessor lacks a legal basis or that another person has a greater right to possess the thing. (3) Possession shall be deemed in good faith until the contrary is proved. Division 2 - Acquisition and Termination of Possession 36 - Acquisition of possession (1) Possession is acquired by gaining actual control over a thing or over the means which enable actual control over the thing.

4 (2) Agreement between the current possessor and the acquirer is sufficient for the acquisition of possession if the acquirer is able to exercise actual control over the thing. (3) (Repealed entered into force RT I 2003, 13, 64) 37 - Acquisition of indirect possession Indirect possession is acquired by assignment to the acquirer of the right to demand delivery of a thing if the transferor of the thing themselves or a third person remains in possession of the thing Transfer of possession to successor Possession transfers to a successor Termination of possession (1) Possession terminates if a possessor relinquishes actual control over a thing or loses it in any other manner. (2) A temporary impediment or interruption in the exercise of actual control does not terminate possession. (3) (Repealed entered into force RT I 2003, 13, 64) Division 3 - Protection of Possession 40 - Arbitrary action and arbitrary possession (1) Possession is protected by law against arbitrary action. (2) Arbitrary action is the unlawful violation of possession of a thing or the unlawful deprivation of possession without the consent of the possessor. Possession obtained in this manner is arbitrary. (3) Violation of possession is an impediment to the exercise of actual control by a possessor over a thing or an attempt or threat to deprive the possessor of the thing if there is reason to fear execution thereof. (4) A successor to possession and any other legal successor is also liable for the consequences of arbitrary possession if upon acquiring possession the latter knew of the arbitrariness of the possession of the predecessor Self-help (1) A possessor may protect the possessor s possession by force against arbitrary action without exceeding the limits of self-defence.

5 (2) If a possessor is deprived of a movable arbitrarily in secret or by force, the possessor has the right to immediately deprive the user of arbitrary action who is apprehended in the act or pursued of the movable. (3) If a possessor is deprived of possession of an immovable arbitrarily in secret or by force, the possessor has the right to banish the user of arbitrary action from the immovable and to regain control over the immovable. (4) A person specified in subsection 33 (3) may also use the right of a possessor to self-help provided for in this section Right to search (1) If a movable ceases to be under the control of a possessor and is on an immovable in the possession of another person, the possessor of the immovable is required to permit a search for and removal of the thing unless someone has taken possession of the thing in the interim. (2) The possessor of an immovable has the right to demand compensation for any damage arising from a search for and removal of a thing. If there is reason to presume that damage will arise, then until receipt of security the possessor of the immovable has the right to refuse to grant permission to search for and remove the thing. Refusal is not permitted if delay is hazardous (Repealed entered into force RT I 2003, 13, 64) 44 - Claim arising from violation of possession (1) In the event of violation of possession, a possessor has the right to demand elimination of the violation and prevention of a subsequent violation. (2) A claim shall not be satisfied if possession of the claimant is arbitrary with respect to the violator or a predecessor of the violator and is acquired within one year before the violation Claim arising from deprivation of possession (1) Upon deprivation of possession, the possessor has the right to demand restoration of possession from the person who is the arbitrary possessor with respect to the claimant. (2) A claim shall not be satisfied if possession of the claimant is arbitrary with respect to the depriver or a predecessor of the depriver and is acquired within one year before the deprivation of possession.

6 46 - Objections of possessor A possessor may refuse to satisfy the claims specified in 44 and 45 of this Act if the possessor proves that the violation or deprivation of possession was not arbitrary and that the possessor had the right to violate the possession or to possess the thing Rights of indirect possessor (1) A claim specified in sections 44 and 45 may also be submitted by an indirect possessor. (2) If possession is taken away, an indirect possessor may demand restoration of possession to the direct possessor. If the direct possessor cannot receive or does not want restoration of possession, the indirect possessor may demand transfer of possession to themself. (3) An indirect possessor has the right to search (section 42) under the conditions specified in subsection (2) of this section Termination of claim for protection of possession (1) A claim specified in 44 and 45 of this Act terminates after one year from the violation or deprivation of possession if the claim is not enforced by filing a corresponding action with a court. (2) A claim specified in 44 and 45 of this Act also terminates if, after the taking of arbitrary action, it is established by a court judgment which has entered into force that the person who took arbitrary action holds a right in respect of a thing which is such that the person may claim possession of the thing on the basis of the right Protection of partial possession A person who possesses a physical share of a thing may protect possession of the share pursuant to the procedure provided for in sections Protection of common possession (1) If several persons possess a thing jointly (common possession), each copossessor or the co-possessors jointly may protect possession pursuant to the procedure provided for in sections (2) The provisions for protection of possession do not apply in a dispute between co-possessors over the extent of the right of use of possession.

7 Chapter 2 - Land Register Division 1 - General provisions 51 - Definition of land register (1) A land register shall be maintained concerning immovables and related real rights. (2) (Repealed entered into force RT I 2003, 13, 64) (3) (Repealed entered into force RT I 2003, 13, 64) 52 - (Repealed entered into force RT I 2003, 13, 64) 53 - Information entered in land register (1) Only information prescribed by law is entered in the land register. (2) (Repealed entered into force RT I 1999, 27, 380) 54 - Merger and division of immovables (1) Immovables may be merged into one immovable, or an immovable may be divided into several immovables only at the request of the owner. (2) In the event of a merger of immovables or the division of an immovable, rights entered in the land register remain valid. If it is impossible for rights to remain valid in their previous form, the rights entered in the land register shall remain valid according to the notarised agreement of the persons concerned. (3) In the event of a merger of immovables, the real rights which encumbered the immovables extend to the entire created immovable Access to land register (1) The land register is public. Everyone has the right to examine land register information and to receive extracts therefrom pursuant to the procedure provided by law.

8 ( entered into force RT I 1999, 27, 380) (2) No one may be excused by ignorance of information in the land register Presumption of correctness of land register (1) Information entered in the land register is presumed correct. (2) If a right entered in the land register is deleted, it shall be presumed to have extinguished. (3) and (4) (Repealed entered into force RTI, , 37, 255) Ownership in Good Faith (1) If a person acquires an immovable or a restricted real right in good faith with a transaction relying on information in the land register, the information entered in the land register regarding this person is presumed correct, except in the case if an objection concerning the correctness of the information entered in the land register has been entered in the land register or if the acquirer knew or should have known that the land register entry was incorrect. (2) If a right of disposal of a right of an entitled person, entered in the land register, is restricted for the benefit of a third person, the restriction is valid with respect to the acquirer if it is entered in the land register or if the acquirer knew or should have known of the restricted right of disposal. (3) If making an entry in the land register is required to acquire an immovable or a restricted real right, the time for the submission of registration application is determinative concerning the acquirer s good faith. (4) The provisions of this Article are also applicable if a registration act concerning a person is made relying on information in the land register or a transaction, including a disposition concerning a right entered in the land register, not mentioned in this Article, is made with a person relying on information in the land register (Repealed entered into force RT I 2003, 13, 64) Specification of content of real right Upon the entry of a real right in the land register, documents which are the basis for the making of the land register entry may be referred to in order to specify the content of the right, unless otherwise provided by law.

9 58 - (Repealed entered into force RT I 2003, 13, 64) 59 - Ranking of real rights (1) Real rights shall receive a ranking by entry in the land register. (2) Entries in the land register shall be made in the order of arrival of applications Relationship between the ranking of rights (1) If several entries are made in the same register division, each entry receives a ranking which corresponds to the ranking of the registration in the land registry journal. If applications are submitted concurrently, they are granted the same ranking and it shall be indicated in corresponding entries. (2) If entries are made in different divisions on the same day on the basis of registration applications submitted on different dates, the entries shall indicate that an entry applied for later has a lower ranking than an entry applied for earlier. (3) The provisions of subsections (1) and (2) of this section do not apply if the persons concerned have agreed on a different relationship between the ranking of rights and an entry has been made in the land register concerning such agreement. (4) A notation made on the basis of a ruling on the securing of an action and a judicial mortgage are entered in the land register pursuant to the general procedure. ( entered into force RT I 1999, 27, 380) 60 - Change of ranking (1) The ranking of a real right entered in the land register may be changed unless otherwise provided by law. (2) In order to change a ranking, an agreement between the persons the ranking of whose rights is changed and the making of a corresponding entry in the land register are required. In order to lower the ranking of a mortgage, the consent of the owner of the immovable is also required. Consent cannot be withdrawn. (3) If the right lowered upon a change extinguishes, the elevated right does not, as a result, lose the position received by the change of ranking.

10 (4) A change of ranking shall not damage a right which is ranked between the lowered and elevated rights. ( entered into force RT I 1999, 27, 380) 61 - Privileged ranking (1) In encumbering an immovable with a right, an owner may reserve a privilege to enter another right the extent of which is determined ahead of the encumbering right. (2) A privilege shall be entered as a notation in the land register next to the right which must be lowered in the exercise of the privilege. (3) Upon transfer of an immovable or upon succession, the privilege specified in subsection (1) of this section transfers to the actual acquirer. Division 2 - Classification of Entries 62 - Entries Real rights and notations shall be entered in the land register. ( entered into force RT I 1999, 27, 380) Making of entry (1) A land register entry shall be made, amended or deleted on the basis of a registration application. A registration application is a unilateral application which expresses the desire for an entry to be made in the land registry. A registration application may also be contained in a real right contract. (2) On the basis of a court judgment or court ruling which has entered into force, a land register entry shall be made on the basis of a copy of a court decision which has entered into force. (3) In the cases provided by law, an entry is ex officio made without a registration application Notation in land register (1) A notation may be entered in the land register: 1) to secure a claim for the acquisition or deletion of a real right, for the change of content or ranking of a right, including a future or conditional claim (preliminary notation);

11 2) to secure a demand for the amendment or deletion of an incorrect entry ( 65) in the land register (objection); 3) for the complete or partial prohibition of the disposal of ownership or restricted real right (notation concerning prohibition); 4) for the demonstration of other circumstances, the entry of which in the land register is permitted by law (notation). (2) A notation concerning a prohibition prohibits the making of entries in the land register completely or partially according to the contents of the notation. (3) The disposal of a real right after the entry of a preliminary notation in the land register is void to the extent that this prejudices or restricts a claim secured by the preliminary notation. This does not prevent entries from being made in the land register. (4) The provisions of subsection (3) of this section apply also with regard to disposal in the course of compulsory execution, by a trustee in bankruptcy or on the basis of a court decision which has entered into force. (5) If a disposal is void on the bases provided for in subsections (3) or (4) of this section, the person for whose benefit a preliminary notation has been entered in the land register may request from the person for whose benefit a real right or notations have been registered the person s consent to the making or deletion of the entry necessary for the fulfilment of the claim secured by the preliminary notation. (6) The ranking of a right concerning which a notation is made shall be specified according to the notation. (7) (Repealed entered into force RT I 2003, 13, 64) (8) A person whose ownership or limited real right a preliminary notation or objection concerns has the right to require deletion of the notation from the person for whose benefit the notation was made if the exercise of the right secured by the notation is precluded, in particular, in case the claim for the securing of which the notation was made has terminated.

12 Entry of notation in land register (1) A preliminary notation shall be entered in the land register on the basis of an application or with the consent of the person whose ownership or limited real right the preliminary notation concerns. (2) A preliminary notation may also be entered in the land register on the basis of a ruling on the securing of an action. A person demanding entry of a preliminary notation in the land register is not required to prove that fulfilment of the claim secured by the preliminary notation may become impracticable or impossible for the preliminary notation to be entered in the land register on the basis of a ruling on the securing of an action. (3) Upon the entry of a preliminary notation in the land register, a ruling on the securing of an action or another document which is the basis for the making of the land register entry may be referred to in order to specify the claim secured by the preliminary notation. (4) An objection shall be entered in the land register on the basis of an application or with the consent of the person whose ownership or limited real right the objection concerns. (5) An objection may also be entered in the land register on the basis of a ruling on the securing of an action. A person demanding entry of an objection in the land register is not required to prove that fulfilment of the claim secured by the objection may become impracticable or impossible for the objection to be entered in the land register on the basis of a ruling on the securing of an action. (6) A notation concerning a prohibition shall be entered in the land register on the basis of a ruling on the securing of an action or on another basis provided by law. (7) A notation shall be entered in the land register in the cases prescribed by law. (8) In a notation concerning a lease contract or commercial lease contract, the date of expiry of the lease contract or commercial lease contract entered into for a specified term or the term for ordinary cancellation of the contract, if the term is longer than the term for cancellation provided by law, shall be indicated Demand for deletion of preliminary notation (1) If the whereabouts of the creditor of a claim secured by a preliminary notation are unknown, the owner may demand the deletion of the preliminary notation provided that ten years have passed since the last land register entry concerning the preliminary notation was made and the debtor of the claim secured by the preliminary notation has not accepted the claim secured by the preliminary notation during that time.

13 (2) Upon the submission of a demand specified in subsection (1) of this section, the court shall determine the term for submission of objections and shall publish a corresponding announcement in the official publication Ametlikud Teadaanded 2. If objections are not filed during the specified term or are rejected, the court shall issue an order for the deletion of the preliminary notation. Division 3 - General Provisions Concerning Real Rights in Respect of Immovables 64 - (Repealed entered into force RT I 2003, 13, 64) Transfer and encumbrance of immovable property ownership For the transfer of immovable property ownership or encumbrance of an immovable with a real right and for the transfer or encumbrance of a real right encumbering an immovable or the amendment of the content of such real right, a notarised agreement between the entitled person and the other party (a real right contract) is required and a corresponding entry shall be made in the land register, unless otherwise provided by law Termination of right For the termination of a real right encumbering an immovable, a notarised application for the termination of the right from the entitled person is required and the right shall be deleted from the land register, unless otherwise provided by law. The application shall be submitted to a land registry department or to the person for whose benefit the right is terminated Amendment or deletion of incorrect entry (1) A person whose right is violated by an incorrect entry, e.g. the right of the person is not entered in the land register, is incorrectly entered or the person's right is prejudiced by the entry of a nonexistent encumbrance or restriction, may demand amendment or deletion. The consent of the person whose rights are affected by the correction is required for the making of the correction. If the person fails to grant consent within one month, the person who wishes to amend the entry has the right to file an action. (2) Until amendment or deletion of an entry, the person demanding the making of an amendment in the land register may request from the court the entry of an objection in the land register for restriction of a person s right of disposal

14 entered in the land register. A person demanding entry of the objection is not required to prove violation of the person s rights or danger of their violation for entry of such notation in the land register. (3) The demand specified in subsections (1) and (2) of this section shall not be submitted with respect to real rights entered in the land register acquired by a third person in good faith. ( entered into force RT I 1999, 27, 380) 66 - Deletion of entry upon extinguishment of real right (1) If an entry loses all legal effect due to extinguishment of a real right, the owner of the encumbered immovable has the right to demand deletion of the entry. (2) A real right in an immovable entered in the land register does not extinguish solely for the reason that the owner of the immovable acquires this right or the owner of this right acquires the immovable (Repealed entered into force RT I 2003, 13, 64) Part 3 - Ownership Chapter 1 - General provisions Division 1 - Definition and Classification of Ownership 68 - Definition of ownership (1) Ownership is full legal control by a person over a thing. An owner has the right to possess, use and dispose of a thing, and to demand the prevention of violation of these rights and elimination of the consequences of violation from all other persons. (2) The rights of an owner may only be restricted by law or the rights of other persons. (3) Ownership is created only in the cases provided by law. ( entered into force RT I 1999, 27, 380) 69 - (Repealed entered into force RT I 2003, 13, 64) 70 - Shared ownership (1) Shared ownership is ownership belonging to two or more persons concurrently. (2) Shared ownership is common ownership or joint ownership.

15 (3) Common ownership is ownership in legal shares of a shared thing belonging to two or more persons concurrently. (4) Joint ownership is ownership in undefined shares of a shared thing belonging to two or more persons concurrently. (5) Shared ownership is common ownership unless otherwise provided by law. (6) Provisions concerning common ownership apply to joint ownership unless otherwise provided by the law providing for joint ownership. (7) If a right belongs to several persons (community), the provisions concerning joint ownership are applied thereto unless otherwise provided by law. ( entered into force RT I 1999, 27, 380) Division 2 - Common Ownership 71 - Extent of common ownership (1) The shares of co-owners in a shared thing are equal unless otherwise provided by law or a transaction. (2) The share of the fruit of a shared thing corresponding to a co-owner s share belongs to the co-owner unless otherwise provided by law, a transaction or agreement. (3) With respect to other co-owners, a co-owner has the rights of an owner with regard to the co-owner s share in the shared thing, considering the rights of the other co-owners. (4) With respect to third persons, a co-owner has all the rights of an owner with regard to the shared thing Possession and use of common ownership (1) Co-owners shall possess and use a shared thing according to an agreement or a decision of a majority of the co-owners if the majority owns the larger share in the shared thing. (2) Income corresponding to the share of a co-owner that the co-owner has the right to receive shall not be reduced by the majority specified in subsection (1) of this section without the consent of the co-owner. (3) A co-owner has the right to use a shared thing in so far as this does not hinder common use by the other co-owners. (4) A co-owner has the right to perform acts necessary for preservation of a thing without the consent of the other co-owners, but the co-owner may demand

16 reimbursement of the expenses necessary for preservation of the thing from the other co-owners in proportion to their shares. (5) A co-owner has the right to demand from the other co-owners that possession and use of a thing in common ownership be effected according to the interests of all co-owners. Co-owners shall act in good faith in their relations with one another and they shall refrain, in particular, from damaging the rights of other co-owners Disposal of legal share of common ownership (1) A co-owner may transfer, bequeath, pledge or in any other manner dispose of the legal share in a shared thing belonging to the co-owner. (2) Upon the sale of a legal share in an immovable to a person who is neither a coowner nor privileged pursuant to law, the other co-owners have the right of pre-emption to the legal share being sold. (3) The right of pre-emption specified in subsection (2) of this section is also valid upon the sale of a legal share of a co-owner in an immovable by compulsory auction. (4) The provisions of subsection (2) of this section do not apply if a co-owner transfers a legal share in immovables to a descendant or parent Disposal of common ownership as whole (1) A thing in common ownership may be transferred or encumbered, and a thing or its economic purpose may be significantly changed only by agreement of all co-owners. (2) (Repealed entered into force RT I 2003, 13, 64) 75 - Bearing of encumbrances and expenses (1) A co-owner shall bear the encumbrances incumbent on a shared thing corresponding to the size of the share belonging to the co-owner, and any damage and expenses relating to the maintenance, possession and use of the thing.

17 (2) (Repealed entered into force RT I 2003, 13, 64) 76 - Demand for termination of common ownership (1) A co-owner has the right to demand the termination of common ownership at any time. (2) The right to demand the termination of common ownership may be precluded by an agreement between the co-owners. (3) If the right to demand the termination of common ownership is precluded by an agreement, termination may be demanded only for good reason. Where a term was set for the cancellation of common ownership, common ownership may be cancelled for good reason without adhering to the set term. (4) Any agreement not specified in this section which precludes or restricts the right to demand the termination of common ownership is void Division of thing upon termination of common ownership (1) Upon termination of common ownership, a thing shall be divided according to the agreement of the co-owners. (2) Failing agreement of the co-owners with respect to the manner of division of a thing in common ownership, a court shall decide at the request of the plaintiff whether to divide the thing among the co-owners in physical shares, to give the thing to one or several co-owners and impose on them the obligation to pay the other co-owners for their shares in money, or to sell the thing by public auction or auction among the co-owners and divide the money received among the co-owners according to the size of their shares. (3) Upon division of common ownership as physical shares, if the value of the physical shares does not correspond to the value of the legal shares belonging to the co-owners, the court may order a monetary set-off for equalisation of the shares or encumber individual shares with a servitude for the benefit of the other shares. (4) The division of shares in real terms determined by the court may also be effected by lot, where necessary (Repealed entered into force RT I 2003, 13, 64)

18 79 - Validity of agreement and majority decision of co-owners with respect to legal successors (1) Any agreement between co-owners concerning the possession and use of common ownership and termination of common ownership shall be valid with respect to the legal successors of the co-owners. (2) If an immovable is in common ownership, any agreement specified in subsection (1) of this section shall be valid with respect to the legal successors of co-owners only if it has been entered in the land register as a notation. Division 3 - Protection of Ownership 80 - Reclamation of thing from illegal possession (1) An owner has a right of claim against anyone who possesses a thing of the owner without legal basis. (2) The claim of the owner shall be for recognition of the right of ownership and reclamation of the thing from illegal possession into the owner's possession (Repealed entered into force RT I 2003, 13, 64) 82 - Proof of possession (1) In the case of a dispute, the owner shall prove that the possessor possesses a thing belonging to the owner. (2) If a possessor relinquishes possession with the purpose of being released from a claim, the court may deem the possessor a possessor regardless of the relinquishment Objections of possessor (1) A possessor has the right to refuse to deliver a thing if the possessor has the right to possess the thing in respect of the owner. (2) A direct possessor has the right to refuse to deliver a thing if an indirect possessor from whom the direct possessor obtained the right to possess the thing has the right to possess the thing in respect of the owner. If the indirect possessor is not entitled to transfer possession to the possessor, the owner may demand that the direct possessor deliver the thing to the indirect possessor or,

19 in case the latter refuses to assume possession, that the direct possessor deliver the thing to the owner. (3) The possessor of a thing acquired by assignment of a demand for delivery pursuant to 93 of this Act may submit objections, which the possessor could present in respect of the assigned demand, to the new owner Liability of possessor for thing and accessories (1) A possessor in bad faith is required to compensate the owner for damage caused as a result of the destruction of or decrease in value of the thing and its accessories pursuant to the provisions of the Law of Obligations Act (RT I 2001, 81, 487; 2002, 60, 374; 2003, 78, 523) concerning unlawful causing of damage. (2) A person who obtained possession of a thing as a result of arbitrary action is liable for the destruction of or decrease in value of the thing and its accessories, unless the destruction or decrease in value would also have occurred had the thing been in the possession of the plaintiff. (3) If a possessor is in good faith, the possessor is not liable for the destruction of or decrease in value of the thing and its accessories if the destruction or decrease in value occurs before the possessor becomes aware of the filing of an action. The possessor is liable for the destruction of or decrease in value of the thing and its accessories which occur by the fault of the possessor after the possessor becomes aware of the filing of an action. (4) If a possessor transfers a thing during the court proceeding after the possessor became or should have become aware of the filing of the action, the possessor is liable as a possessor in bad faith, except if the transfer was absolutely necessary to prevent violation of the thing Delivery of and compensation for gains (1) A possessor is liable for the delivery of or compensation for gains derived from a thing pursuant to of the Law of Obligations Act.

20 (2) A person who obtained possession of a thing as a result of arbitrary action is, in addition to the provisions of subsection (1) of this section, also required to compensate for gains which the owner would have received had the owner been in possession of the thing (Repealed entered into force RT I 2003, 13, 64) 87 - (Repealed entered into force RT I 2003, 13, 64) 88 - Reimbursement of expenses to defendant (1) A possessor has the right to demand reimbursement of necessary expenses made on a thing by the possessor, unless the possessor obtained possession as a result of arbitrary action. A possessor may demand compensation for other costs pursuant to 1042 of the Law of Obligations Act. (2) A possessor has the right to remove from a thing the improvements made by means of the expenses made on the thing provided that the possessor restores the previous condition of the thing to be delivered. Such right is precluded if it is impossible to remove the improvements without damaging them or if the possessor is compensated for the value the improvements made by means of the expenses would have after their separation from the thing Protection of ownership in case of violation unrelated to loss of possession An owner has the right to demand elimination of any violation of the right of ownership even if the violation is not related to a loss of possession. If there is reason to presume recurrence of such violation, the owner may demand avoidance of the violation. A demand is precluded if the owner is required to endure the violation Presumption of ownership of possessor (1) A possessor of a movable and any earlier possessor shall be deemed the owner of the thing during the possessor s possession until the contrary is proved. (2) In the case of indirect possession, the presumption specified in subsection (1) of this section is valid only with respect to an indirect possessor (Repealed entered into force RT I 1999, 27, 380)

21 Chapter 2 - Movable Property Ownership Division 1 - Creation of Movable Property Ownership Subdivision 1 - Delivery 92 - Creation of movable property ownership by delivery (1) Movable property ownership is created by delivery of a movable if the transferor delivers possession of the thing to the acquirer and they have agreed that ownership transfers to the acquirer. (2) If a movable is already in the possession of the acquirer, an agreement between the transferor and acquirer concerning the transfer of ownership is sufficient for the creation of ownership. (3) (Repealed entered into force RT I 1999, 27, 380) (4) (Repealed entered into force RT I 2003, 13, 64) Unregistered sea-going vessel For the creation of ownership in a sea-going vessel which has not been entered in a register of ships kept by a court of Estonia, delivery of the sea-going vessel is not required if the transferor and acquirer agree on the immediate transfer of the ownership. ( entered into force RT I 1998, 30, 409) 93 - Acquisition by assignment of right to demand delivery of thing If a thing is in the possession of a third person, a transferor may with the agreement of the acquirer substitute delivery of possession of the thing by assignment of the right to demand delivery to the acquirer Acquisition by leaving thing in possession of transferor Where the owner of a thing is the direct possessor of the thing, transfer of the possession of the thing upon transfer of ownership may be replaced by a contract to be entered into between the transferor and the acquirer on the basis of which the acquirer obtains indirect possession of the thing.

22 95 - Acquisition in good faith (1) A person who has acquired a thing by delivery in good faith is the owner of the thing as of the time of receipt of the thing into the person s possession even if the transferor was not entitled to transfer ownership. (1 1 ) If a thing transferred pursuant to 93 of this Act does not belong to the transferor, the acquirer shall become the owner of the thing by assignment of demand only if the acquirer obtains possession of the thing from a third person and is in good faith at the time of obtaining possession. (1 2 ) If a thing transferred pursuant to 94 of this Act does not belong to the transferor, the acquirer shall become the owner by delivery of the thing to the acquirer provided that the acquirer is in good faith at the time of delivery. (2) An acquirer is in bad faith if the acquirer knew or should have known that the transferor was not entitled to transfer ownership. (3) Acquisition pursuant to subsections (1)-(1 2 ) of this section is not effected if a thing was stolen, lost or dispossessed in any other manner from the owner against the will of the owner. If the owner was an indirect possessor, the same applies in case the thing is stolen, lost or dispossessed in any other manner from the direct possessor against the will of the direct possessor. This subsection does not apply to money or bearer securities or to a thing acquired by public auction. (4) (Repealed entered into force RT I 2003, 13, 64) (5) If a sea-going vessel transferred pursuant to 921 of this Act did not belong to the transferor, the acquirer shall become the owner as of the moment of delivery of the sea-going vessel except if the owner was in bad faith at the time. If a part of the vessel is the object of the transaction, the time of acquisition of common ownership is decisive. ( entered into force RT I 1998, 30, 409)

23 Extinguishment of encumbrances (1) Upon transfer of ownership, the rights of a third person to the transferred thing which encumbered the movable extinguish. (2) Upon transfer of ownership pursuant to subsection 92 (2) of this Act, the rights of a third person extinguish only if the acquirer obtained possession from the transferor. Upon transfer pursuant to 92 1 or 94 of this Act or if a thing transferred pursuant to 93 of this Act was not in the indirect possession of the transferor, the right of a third person extinguishes only if the acquirer obtains direct possession of the thing. (3) The right of a third person does not extinguish if the acquirer does not act in good faith with respect to the right at the time of transfer of ownership. The acquirer acts in good faith if the acquirer is not aware and should not be aware of the right of a third person. (4) If, pursuant to 93 of this Act, a right belongs to a possessor who is a third person, the right does not extinguish with respect to an acquirer who is in good faith. Subdivision 2 - Occupation 96 - Content of occupation (1) Movable property ownership is created by occupation if a person takes possession of an ownerless movable with the intention of becoming its owner. (2) A thing is not acquired if occupation is prohibited by law or the taking of possession violates the right of another person to occupy the thing. (3) A thing is ownerless if it has not yet been in the ownership of anyone or if the owner has terminated possession with the intention of relinquishing ownership. (4) A wild animal is ownerless if it is free in nature (Repealed entered into force RT I 2003, 13, 64) Subdivision 3 - Finding 98 - Notification obligation (1) A person who has found a lost thing and taken possession thereof shall promptly notify the loser or owner. If the loser or owner is unknown to the

24 finder, the finder is required to notify the police of the finding if the value of the thing exceeds one hundred kroons. (2) Upon finding a thing in a residential building, public establishment or means of transport, the person finding the thing is required to deliver the thing to the house owner, tenant, an employee of the corresponding establishment, the driver of the means of transport or the police. The house owner, tenant, establishment, transport organisation or police to whom the found thing is delivered shall be deemed the finder Safe-keeping and sale of finding (1) A finder is required to keep a found thing in a manner which ensures its preservation. (2) After public notification, a finder has the right to sell the thing by public auction if safe-keeping of the thing is excessively expensive, if the thing is highly perishable or if a public establishment or the police have kept the thing for six months. (3) Money received at an auction from which the safe-keeping and sales expenses are deducted replaces the thing Acquisition of finding (1) If a finder has performed the finder's obligations and the owner has not become known within one year after notification of the finding, the finder acquires the thing or the money replacing it. (2) If the value of a thing does not exceed one hundred kroons, the term provided for in subsection (1) of this section commences from the day of finding. (3) The local government of the place of finding acquires the thing or the money replacing it if the police have kept the finding for one year after taking possession of the thing. (4) A finder does not acquire a thing if the finder violates the notification obligation or conceals the finding. (5) The rights of a third person which encumbered a thing extinguish upon the acquisition of the finding Finder s fee and reimbursement of expenses (1) If a finder has not yet acquired a thing, the owner recovers the thing or the money replacing it if the owner reimburses the necessary expenses and pays a

25 finder s fee to the finder. The finder s fee shall be specified by agreement of the finder and the owner. In the case of a dispute, the finder s fee shall be specified by a court but the fee shall not exceed one third of the value of the finding from which the necessary expenses incurred by the finder in connection with the finding have been deducted. (1 1 ) A finder s fee cannot be claimed if the finder violates the notification obligation or conceals a finding. (2) The necessary expenses specified in subsection (1) of this section are expenses which the finder makes for preservation of the found thing, for seeking the entitled person and for selling the found thing. (3) The persons specified in subsection 98 (2) shall not receive a finder s fee Finder s liability A finder is liable for a violation of a finder s obligations only if the finder acts intentionally or with gross negligence (Repealed entered into force RT I 2003, 13, 64) Subdivision 4 - Treasure Definition of treasure (1) Treasure is money or valuables such as gems, pearls or precious metals buried in the ground or hidden in any other manner whose owner cannot be ascertained. (2) Treasure belongs to the person on whose immovable or movable it was found Finder s fee (1) A finder of treasure has the right to receive a finder s fee equal to one-half of the value of the treasure. (2) The value of a treasure shall be specified by agreement of the finder and the owner, or, in the case of a dispute, by a court. (3) A finder who searches for treasure without the consent of the owner of the immovable or movable shall not receive a finder s fee.

26 105 - Treasure with special value (1) An ownerless natural thing or a thing with historical, scientific, artistic or other cultural value belongs to the state regardless of on whose immovable it was found. (2) A person on whose immovable a thing specified in subsection (1) of this section is found is required to permit unearthing of the thing if the person is compensated for the damage caused thereby. (3) A finder has the right to receive remuneration if the finder is not required to search for and unearth the things specified in subsection (1) of this section. (4) Other rights and obligations arising from the finding of treasure with special value and the amount of remuneration shall be provided by law. Subdivision 5 - Specification, confusion and accession Specification (1) If someone processes a movable of another in good faith, the new thing belongs to the processor if the work is more valuable than the original thing, but otherwise to the owner of the original thing. (2) If the processor acted in bad faith, the owner of the original thing has the right to demand a new thing for themself regardless of whether the work is more valuable than the original thing Accession and confusion (1) If movables of several owners are joined in such a way that they become essential parts of an integrated thing, the integrated thing created by joining shall be in common ownership of the current owners of the things. The sizes of shares in the common ownership shall be specified according to the value of the joined things which they had at the time of accession. (2) If one of the joined things is to be considered the principal thing, the owner of that thing shall become the sole owner of the integrated thing created as a result of the accession. (3) If an immovable is joined to a plot of land in such a way that it becomes an essential part of the plot of land, ownership of the plot of land shall extend to the thing joined to the plot of land. (4) The provisions of subsections (1) and (2) of this section also apply if the movables of several owners are inseparably confused or confused in such a way that separating them would involve unreasonable costs.

27 (5) If ownership of a thing extinguishes in accordance with subsections (1)-(4) of this section, other rights which encumbered the thing also extinguish. If the owner of an encumbered thing becomes a co-owner of an integrated thing created as a result of accession, the rights which encumbered the thing shall remain valid with respect to the co-owner s share in the common ownership. If the owner of an encumbered thing becomes the sole owner of an integrated thing created as a result of accession, the rights which encumbered the thing shall remain valid with respect to the integrated thing (Repealed entered into force RT I 2003, 13, 64) (Repealed entered into force RT I 2003, 13, 64) Subdivision 6 - Prescription Content of prescription (1) Movable property ownership is created by prescription if a person possesses movables without interruption for five years as an owner. (2) (Repealed entered into force RT I 2003, 13, 64) (3) (Repealed entered into force RT I 2003, 13, 64) Preclusion of prescription (1) Prescription is precluded if a possessor is in bad faith. (2) A possessor is in bad faith if upon obtainment of possession, the possessor knew or should have known that the possessor did not acquire the thing by the obtainment of possession or if the possessor became aware of this before the end of the prescription period Calculation of prescription period (1) A person in whose possession a thing is at the beginning and end of a specific period of time is also presumed to be the possessor in the interim. (2) Upon acquisition of possession as a legal successor, a possessor may add the prescription periods of the possessor and the predecessor of the possessor Suspension of prescription Prescription does not commence or is suspended as of the moment when the limitation period for a claim for the protection of ownership of the owner of a movable is suspended.